Danish homeware retailer, Søstrene Grene, has reported its most successful financial year on record, achieving substantial growth despite a challenging retail environment. For the 2023/24 fiscal year, ending 30 April 2024, the company posted a 22% increase in turnover, rising from £203 million to £247 million, alongside a 15% rise in profit before tax, reaching £24 million. Gross profit grew from £76 million to £99 million.
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Mikkel Grene, Group CEO and co-owner, commented:
"We are proud to announce the strongest financial result in Søstrene Grene's history. This performance validates the strategic decisions we have made to innovate and expand our business. The results clearly demonstrate the effectiveness of our investments."
He added:
"Our customers continue to seek quality, sustainability, and stylish designs at accessible prices. This has reinforced our position in the market, even amid broader economic challenges. Our ability to meet their needs during uncertain times has been a key driver of our success."
Søstrene Grene also emphasised its commitment to sustainability, with its carbon reduction targets validated by the Science Based Targets initiative (SBTi). "We are making meaningful progress in lowering emissions across our supply chain. With our targets validated by SBTi, we are on a clear path to reducing our environmental impact while continuing to grow," Grene said.
The company is investing £11 million in key business projects, including SAP system implementation, warehouse automation through robotics, and enhancing digital and marketing capabilities. Plans are in place to open 60 new stores by the end of 2024, aiming for a total of 500 stores by 2027. Grene noted: "We are not only expanding our physical presence but also investing in technology to enhance efficiency and the customer experience. These investments are crucial as we position ourselves for sustained growth in the coming years."
Despite rising freight costs, Søstrene Grene has prioritised affordability, absorbing expenses rather than passing them on. Grene acknowledged: "While increased freight costs are a challenge, we remain focused on keeping our products affordable. We expect some impact on margins this year, but we are confident in achieving even stronger results next year."
Founded in 1973 and introduced to the UK in 2016, Søstrene Grene now operates over 300 stores across 16 countries, with online shops in 14 markets, solidifying its international presence and ambitious expansion strategy, particularly in the UK, with a target of 100 stores before 2030.
Source: www.retailtimes.co.uk
